Research by Aviva has revealed that when the EU Gender Directive changes parents could be forced to give up paying their children’s car insurance.
The ruling will come into force in a few weeks which will see insurers no longer being able to take gender into account when calculating insurance premiums.
The research found that 32% of parents are currently helping their children to pay towards their insurance. They now believe that the EU ruling will force them to give up helping their children due to the extra expense it may cost.
It was also highlighted that 26% of parents believe their children will have to drive less and 15% said their children will have to sell the car and use public transport. They also stated that their children will have to look for a car that is a less expensive model to keep costs down.
Advice is now being offered to young drivers to help them manage the cost of their insurance premium when the ruling is active. Among the advice is to be aware that parking a vehicle off the road in a garage is more secure than leaving it on the roadside and the use of telematics technology. Telematics monitors when, where and how a car is driven which then leads to an insurance cost based on driving techniques. This could save 20% on a premium as gender isn’t taken into consideration.
Steve Treloar, retail director at Aviva, said: “Parents are clearly worried about the impact of the new legislation and our research shows there’s a lack of understanding about what impact the new Gender Directive changes will have.
“While young drivers are most likely to see a change in their premiums when the EU gender directive comes into force, parents are also likely to notice a difference if they have young drivers included on their own motor insurance, although the potential increase or decrease is likely to be a lot less.”
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By Amanda Bainbridge